Navy Awards $73M for USS Omaha (LCS-12) FY21 DSRA to Vigor Marine LLC
Contract Overview
Contract Amount: $72,984,050 ($73.0M)
Contractor: Vigor Marine LLC
Awarding Agency: Department of Defense
Start Date: 2021-09-13
End Date: 2023-01-20
Contract Duration: 494 days
Daily Burn Rate: $147.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CODE 480, USS OMAHA (LCS-12) FY21 DSRA, SSP: TPPC-LCS12-SSSD21-CNO1, BASE DELIVERY ORDER
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136
Plain-Language Summary
Department of Defense obligated $73.0 million to VIGOR MARINE LLC for work described as: CODE 480, USS OMAHA (LCS-12) FY21 DSRA, SSP: TPPC-LCS12-SSSD21-CNO1, BASE DELIVERY ORDER Key points: 1. Spending focused on ship maintenance and repair for a specific Littoral Combat Ship. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk appears moderate, given the nature of ship repair contracts and fixed-price terms. 4. The sector is dominated by large, specialized shipbuilding and repair firms.
Value Assessment
Rating: good
The contract value of $72.98 million for a Delivery Order under a larger contract appears reasonable for a major ship repair and overhaul. Benchmarking against similar LCS DSRA contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives fair value.
Taxpayer Impact: Taxpayer funds are utilized for essential naval readiness, with competition aiming to optimize cost-effectiveness.
Public Impact
Ensures readiness of a key naval asset, the USS Omaha. Supports jobs in the shipbuilding and repair industry. Demonstrates government's commitment to maintaining its fleet through competitive procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen issues arise during repair.
- Dependence on a single contractor for a critical repair task.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits cost risk.
- Contract supports a specific, critical naval asset.
Sector Analysis
The shipbuilding and repair sector is highly specialized, with significant barriers to entry. Spending benchmarks for similar Littoral Combat Ship depot-level services are not readily available but are expected to be substantial given the complexity.
Small Business Impact
While the prime contractor is Vigor Marine LLC, a large entity, the contract may indirectly benefit small businesses through subcontracting opportunities within the shipbuilding and repair supply chain.
Oversight & Accountability
The Department of the Navy, specifically the Department of the Navy, is responsible for oversight. The use of a Delivery Order under an existing contract suggests a framework for monitoring performance and expenditures.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract awarded under full and open competition.
- Firm Fixed Price contract type.
- Supports critical naval asset readiness.
- Potential for subcontracting opportunities for small businesses.
Tags
ship-building-and-repairing, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.0 million to VIGOR MARINE LLC. CODE 480, USS OMAHA (LCS-12) FY21 DSRA, SSP: TPPC-LCS12-SSSD21-CNO1, BASE DELIVERY ORDER
Who is the contractor on this award?
The obligated recipient is VIGOR MARINE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $73.0 million.
What is the period of performance?
Start: 2021-09-13. End: 2023-01-20.
What is the historical cost performance of Vigor Marine LLC on similar naval repair contracts?
Historical cost performance data for Vigor Marine LLC on similar naval repair contracts is crucial for assessing value. Analyzing past projects for cost overruns, schedule adherence, and quality of work would provide insight into their reliability and efficiency. Without this data, the current $73 million award's true value proposition remains partially obscured, though the firm fixed price offers some protection.
What are the specific risks associated with the USS Omaha's FY21 DSRA, and how are they mitigated?
Specific risks for the USS Omaha's DSRA likely include unforeseen structural damage, complex system failures, and integration challenges during repair. Mitigation strategies would involve detailed inspections, robust quality assurance protocols, contingency planning for unexpected findings, and clear communication channels between the Navy and Vigor Marine LLC. The firm fixed price contract also incentivizes the contractor to manage risks effectively.
How does this contract contribute to the overall readiness and operational effectiveness of the Littoral Combat Ship program?
This contract directly contributes to the operational effectiveness of the USS Omaha by ensuring its structural integrity and system functionality through essential depot-level scheduled maintenance and repair. Maintaining the readiness of individual ships within the LCS program is vital for the fleet's overall capability and ability to execute assigned missions, thereby supporting the broader strategic goals of the Navy.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › NON-NUCLEAR SHIP REPAIR
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002417R4325
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Carlyle Group Management L.L.C.
Address: 5555 N CHANNEL AVE, PORTLAND, OR, 97217
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $72,984,050
Exercised Options: $72,984,050
Current Obligation: $72,984,050
Actual Outlays: $29,845,924
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002418D4326
IDV Type: IDC
Timeline
Start Date: 2021-09-13
Current End Date: 2023-01-20
Potential End Date: 2023-01-20 00:00:00
Last Modified: 2024-02-13
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